The effect of energy wood prices and plantations expansion on
the forest area is small(Fig. 5). There are several reasons for this.
First, we apply asustainability constraint,which does not allow
a direct land-use change from forest to plantations.Second,forest
area becomes more valuable when it is used more extensively.
The indirect land-use effect of plantation expansion on forest area
increases deforestation with lower energy prices.However,higher
forest land prices override this effect with higher energy wood
prices such that deforestation starts to decrease when energy
wood prices exceed 10$/GJ.Third,plantation expansion on agri-
cultural land is partially compensated for by conversion of other
natural vegetation land and forest land to agricultural land.